Criminal Justice News

Wednesday, October 12, 2016

Owners of Biofuel Company Plead Guilty to Conspiracy and Fraud Charges

The owners of an Indiana biofuel producer pleaded guilty to
conspiracy, fraud and false statements for participating in a scheme that
generated over $60 million in fraudulent tax credits and U.S. Environmental
Protection Agency (EPA) renewable fuels credits (RIN credits) at Triton Energy
LLC, a company that purported to produce and sell biofuel for use as
transportation fuel.

Fred Witmer, 46, and Gary Jury, 58, pleaded guilty before U.S.
District Magistrate Judge Magistrate Judge Susan Collins of the Northern
District of Indiana, announced Assistant Attorney General John C. Cruden for
the Department of Justice’s Environment and Natural Resources Division,
Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and
Compliance Assurance, Special Agent in Charge Kathy A. Enstrom for the Internal
Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge W.
Jay Abbott of the FBI’s Indianapolis Field Office.

According to their pleas, Witmer and Jury were co-owners of
Triton Energy LLC and Gen2 Renewable Diesel LLC, both located in Waterloo,
Indiana.Witmer admitted to
participating in a scheme with other coconspirators to fraudulently claim tax
credits and RIN credits on non-qualifying renewable fuel.Although the credits required that the fuel
be used domestically for transportation, Witmer admitted selling it for uses
that included the production of fire starter logs and asphalt and also for
power generation.Jury admitted to
participating in a conspiracy to fraudulently claim tax credits and to
providing false statements to the EPA.

As part of their pleas, Witmer agreed to serve a sentence of
57 months’ incarceration and Jury agreed to serve a sentence of 30 months’
incarceration. A sentencing hearing, has not yet been scheduled.

“Witmer, Jury, and their co-conspirators defrauded a program
Congress had enacted to incentivize the production of biofuels and to help
modernize our nation’s energy economy,” said Assistant Attorney General
Cruden.“These serious crimes undermine
these important public policies and this case demonstrates they will not go
unpunished.The Justice Department will
continue to vigorously prosecute those seeking to manipulate these programs for
personal gain.”

“Eliminating fraud in the renewable fuels market is key to
achieving the greenhouse gas reductions Congress intended under the Renewable
Fuel Standard,” said Assistant Administrator Giles.“EPA is committed to holding those who violate
the law accountable and ensuring a level playing field for companies that
follow the rules.”

“When individuals, such as Mr. Witmer, Mr. Jury and their
co-conspirators, use fraud and deceitful measures to take advantage of federal
tax credits and incentives for personal gain, the harm is felt by all American
taxpayers and our economy,” said Deputy Chief Don Fort for IRS-CI.“IRS-CI will continue to vigorously pursue
individuals who attempt to undermine our tax system.”

“The FBI was pleased to be part of another renewable fuel
fraud investigation in the state of Indiana, in this case targeting Mr. Witmer,
Mr. Jury and their co-conspirators,” said Special Agent in Charge Abbott.“This fraud scheme also victimized U.S.
Taxpayers who believe those who participate in these programs should abide by
the rules which govern them.This
multi-agency effort is indicative of the commitment of resources by the FBI
against perpetrators seeking to take advantage of incentivized programs in
place to modernize our domestic energy programs”

Wire Fraud is punishable by up to 20 years in prison.Conspiracy is punishable by up to five years
in prison.False Statements to the EPA
is punishable by up to two years in prison.

Assistant Attorney General Cruden commended the cooperative
investigation by law enforcement, as well as Department of Justice Trial
Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik, who
represented the United States in this case.